I run a small residential roofing company (just me + 4 guys, doing around $40k/month) and there’s one competitor who’s always been our biggest rival in the area. We’re cordial at supply shops but definitely competing for the same jobs.

Last week I found out (through our shared insurance broker, long story) that they’ve been straight up lying to clients about having a general contractor’s license. Like they claim to be “fully licensed and insured” on their website, truck wraps, everywhere. But they’re not. At all. Never have been. I checked the state licensing board myself – nothing under their business name or the owner’s name.

The kicker? Three of their current clients are homeowners I gave quotes to in the last 6 months and lost the job to them. One lady SPECIFICALLY told me she went with them because “they seemed more legit with all their certifications” and she felt safer. These are $15k-30k jobs btw.

Now I’m sitting here like… do I say something? Part of me wants to send a “hey just fyi” message to those homeowners because like, if something goes wrong on their roof and the guy has no license, their homeowner’s insurance might not cover it?? But another part of me feels like that’s sketchy territory and I’ll just look like a salty competitor trying to poach clients.

My lead guy says absolutely not, “let karma handle it” and it’ll eventually blow up in their face anyway. My wife thinks I have a moral obligation to say something, especially since unlicensed work can void warranties and insurance claims.

But also like… they’re literally breaking the law and winning contracts because of it. In our state you NEED a contractor’s license for jobs over $10k. This isn’t just shady, it’s straight up illegal, right?

The thing that’s really eating at me is one of those clients is an elderly couple on a fixed income who scraped together money for a roof replacement. They’re getting scammed by someone who might leave them with zero recourse if something goes wrong. That one bugs me the most.

Has anyone been in a similar situation? What did you do? I’m losing sleep over this and honestly just need some outside perspective from people who get it.